NATIONAL RURAL LIVELIHOOD MISSION

The National Rural Livelihood Mission (NRLM) was established in June 2010 by the Government of India, to be implemented in all States of the country, to establish efficient and sustainable institutions of the rural poor that enable them to increase household income through livelihood enhancements and improved access to financial and selected public services. NRLM have special focus on the poorest households, who are currently dependant on MGNREGA. These families will be supported to broaden their livelihoods through assets and skill acquisition. This will enhance the quality of their livelihoods significantly. Brief history Pursuant to the recommendations of Hashim Committee, this Ministry restructured all the Rural Development and Poverty Alleviation programmes such as IRDP, TRYSEM, DWCRA, SITRA, GKY, and Million Wells Scheme with a view to improving the efficacy of programmes. All these Schemes were merged into a single self employment programme known as Swarna Jayanti Gram Swarozgar Yojana (SGSY). The Ministry of Rural Development has decided to re-design and re-structure the ongoing Swarna Jayanti Gram Swarojgar Yojana (SGSY) into National Livelihood Mission (NRLM). The idea has been conceived as a cornerstone of national poverty reduction strategy. The objective of the Mission is to reduce poverty among rural BPL by promoting diversified and gainful self-employment and wage employment opportunities which would lead to an appreciable increase in income on sustainable basis. A comprehensive livelihoods approach encompassing four interrelated tasks: a)    Mobilizing all rural, poor households into effective self help groups (SHGs) and SHG federations; b)    Enhancing access to credit and other financial, technical, and marketing services; c)    Building capacities and skills for gainful and sustainable livelihoods; and d)    Improving the delivery of social and economic support services to poor. Thus the objectives of NRLM are: 1.    Universal social mobilization; 2.    Formation of people's institutions; 3.    Universal financial inclusion; 4.    Training and capacity building and 5.    Enhanced package of economic assistance for setting-up of micro enterprises and larger role for Self Help Groups (SHGs) National Rural Livelihoods Mission is a Centrally Sponsored Scheme and the financing of the programme will be shared between the Centre and the States in the ratio of 75:25, except in case of the North Eastern States where it will be on 90:10 basis.  There are two major strategic shifts under NRLM: a)    NRLM is a demand driven programme and the states formulate their own poverty reduction action plans based on their past experience, resources and skills base; and b)    NRLM will provide for a professional support structure for programme implementation at all levels from the national up to the block level in different streams. The Rural Livelihoods Mission has a three-tier interdependent structure. At the apex of the structure is the National Rural Livelihoods Mission, under the Ministry of Rural Development, Govt. of India. At the State level, there is an umbrella organization under the State Department of Rural Development/ Department which is responsible for implementing self-employment/rural livelihoods promotion programs. The State level Mission with dedicated professionals and domain experts under the State department of Rural Department will be guided financially, technically and supported by the NRLM on need basis. The National and the State Mission will have a symbiotic relationship. They will have mutual access to the knowledge and services in the area of rural livelihoods. The National Rural Livelihoods Mission (NRLM) seeks to provide greater focus and momentum to poverty reduction to achieve the Millennium Development Goal by 2015.This entails a rapid increase in viable livelihoods among poor rural households (as well as urban ones). In the longer run, the NRLM is to ensure broad-based inclusive growth and reduce disparities by spreading its benefits from ‘islands of growth’ across the communities, sectors and regions. ROLE OF BANKS IN NRLM The role of Banks will be of prime importance under NRLM as a source of credit for the poor at reasonable rates. NRLM will focus on getting banks to lend to the poor by making them bankable clients through smart use of subsidy. NRLM will focus on women as the best way of reaching out to the whole family is through the woman. There will be a special focus on vulnerable sections: scheduled tribes, scheduled castes, minorities, women headed families, etc. The second focus of NRLM would be rural youth of the country who are unemployed. They will be supported through placement linked skill development projects through which their skills will be upgraded through short term training courses in sectors which have high demand for services. On June 2011 Government of India renamed the National Rural Livelihood Mission as ‘AAJEEVIKA’. Aided in part through investment support by the World Bank, the Mission aims at creating efficient and effective institutional platforms of the rural poor enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services.